Chesapeake Energy Corporation Discloses Initial Horizontal Well Drilling Results in Its Utica Shale Discovery and Announces Achievement of Corporate Production Milestones

Chesapeake Energy Corporation (NYSE:CHK) today disclosed initial
horizontal well drilling results in the wet gas and dry gas phases of
the Utica Shale play in eastern Ohio and western Pennsylvania and also
announced the achievement of certain corporate production milestones.

Chesapeake has drilled 12 horizontal wells in the discovery phase of its
Utica Shale play and has achieved strong initial production success in
the wet gas and dry gas phases of the play from this initial drilling.
The company is early in the process of evaluating the oil phase of the
play. Results from the first four of the company′s completed horizontal
wells in the wet gas and dry gas phases of the play are detailed below
(the company′s other eight drilled horizontal wells are completing or
waiting on completion):

• 
  The Buell 10-11-5 8H in Harrison County, Ohio was drilled to a lateral
  length of 6,418 feet and achieved a peak rate of 9.5 million cubic
  feet (mmcf) per day of natural gas and 1,425 barrels (bbls) per day of
  natural gas liquids and oil (liquids), or 3,010 barrels of oil
  equivalent (boe) per day;
  
• 
  The Mangun 22-15-5 8H in Carroll County, Ohio was drilled to a lateral
  length of 6,231 feet and achieved a peak rate of 3.1 mmcf per day of
  natural gas and 1,015 bbls per day of liquids, or 1,530 boe per day;
  
• 
  The Neider 10-14-5 3H in Carroll County, Ohio was drilled to a lateral
  length of 4,152 feet and achieved a peak rate of 3.8 mmcf per day of
  natural gas and 980 bbls per day of liquids, or 1,615 boe per day; and
  
• 
  The Thompson 3H in Beaver County, Pennsylvania was drilled to a
  lateral length of 4,322 feet and achieved a peak rate of 6.4 mmcf per
  day of dry natural gas.
  

The production rates listed above assume maximum ethane recovery.
Chesapeake is processing the wet natural gas stream from the three Ohio
wells at a nearby processing facility where ethane is currently being
minimally recovered due to temporary market limitations. The company has
multiple projects and initiatives underway to process and market future
production of NGLs including ethane.

Additionally, Chesapeake has recently achieved key production milestones
and set new corporate all-time production records. The company′s gross
operated production has recently reached 6.1 billion cubic feet of
natural gas equivalent (bcfe) per day and its net production has
exceeded 3.45 bcfe per day, including approximately 95,000 bbls per day
of liquids. By the end of 2012 and 2015 Chesapeake plans to increase its
net liquids production by 50% and 150% to more than 150,000 bbls per day
and more than 250,000 bbls per day, respectively, while maintaining its
net natural gas production at current levels. As recently as in 2009,
the company′s full-year liquids production averaged only 32,000 bbls per
day.

Management Comment

Aubrey K. McClendon, Chesapeake′s Chief Executive Officer commented, 'We
are pleased to announce very strong initial drilling results from the
wet gas and dry gas phases of our Utica Shale discovery. Chesapeake has
built a commanding presence in the play with 1.25 million net acres of
leasehold acquired to date, with our current primary leasing efforts
focused in the wet gas phase of the play. We estimate the company′s
leasehold covers approximately 40% of the potentially drillable acres in
the core of the play. The company is targeting a development program
with average drilling and completion costs of approximately $5.0 - $6.0
million per well. Chesapeake is currently drilling with five operated
rigs in the Utica Shale play and plans to increase its operated rigs up
to 10 rigs by year-end 2011, up to 20 rigs by year-end 2012 and up to 40
rigs by year-end 2014.

'I am proud to announce the achievement of these important production
milestones and congratulate Chesapeake′s 12,000 employees for delivering
this outstanding success.?

Chesapeake Energy Corporation is the second-largest producer of
natural gas, a Top 15 producer of oil and natural gas liquids and the
most active driller of new wells in the U.S.Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S.Chesapeake owns leading positions in the Barnett,
Haynesville, Bossier, Marcellus and Pearsall natural gas shale plays and
in the Granite Wash, Cleveland, Tonkawa, Mississippian, Bone Spring,
Avalon, Wolfcamp, Wolfberry, Eagle Ford, Niobrara, Three Forks/Bakken
and Utica unconventional liquids plays.The company has
also vertically integrated its operations and owns substantial
midstream, compression, drilling, trucking, pressure pumping and other
oilfield service assets.Chesapeake′s stock is listed on
the New York Stock Exchange under the symbol CHK.Further
information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and press releases.

This news release includes 'forward-looking statements? that give
our current expectations or forecasts of future events. They include our
plan to process and market future production of natural gas liquids,
estimates of anticipated future natural gas and liquids production and
our planned Utica Shale drilling activity and drilling and completion
costs. Although we believe the expectations and forecasts reflected in
these forward-looking statements are reasonable, we can give no
assurance they will prove to have been correct. They can be affected by
inaccurate assumptions or by known or unknown risks and uncertainties.
Factors that could cause actual results to differ materially from
expected results are described under 'Risk Factors? in our 2010 Form
10-K filed with the U.S. Securities and Exchange Commission on March 1,
2011 and include the volatility of oil, natural gas and natural gas
liquids prices; the availability of capital on an economic basis;
drilling and operating risks, including potential environmental
liabilities; legislative and regulatory changes adversely affecting our
industry and our business; general economic conditions negatively
impacting us and our business counterparties; and transportation
capacity constraints and interruptions. We caution you not to place
undue reliance on our forward-looking statements, which speak only as of
the date of this news release, and we undertake no obligation to update
this information.

Chesapeake Energy Corporation

INVESTOR CONTACTS:

Jeffrey L.
Mobley, CFA, 405-767-4763

jeff.mobley@chk.com

or

John
J. Kilgallon, 405-935-4441

john.kilgallon@chk.com

or

MEDIA
CONTACTS:

Michael Kehs, 405-935-2560

michael.kehs@chk.com

or

Jim
Gipson, 405-935-1310

jim.gipson@chk.com